[arin-ppml] ARIN-prop-165 Eliminate Needs-Based Justification

[Jeffrey Lyon]

On Fri, Feb 17, 2012 at 2:19 PM, Owen DeLong <owen at delong.com> wrote:
>
> On Feb 17, 2012, at 10:59 AM, Jeffrey Lyon wrote:
>
> On Fri, Feb 17, 2012 at 1:25 PM, Owen DeLong <owen at delong.com> wrote:
>
> Jeff,
>
>
> If this policy is adopted, it would enable speculative brokers who wanted to
>
> to maintain inventory without showing need for the addresses. It would
>
> potentially turn IP addresses into a commodities futures market which I do
>
> not believe would serve the community well.
>
>
> You say that no purpose is served when a transfer is rejected between a
>
> company with an unused allocation and a company in need.  Current policy
>
> does not do that. It does limit the size of the transfer to the justified
>
> need, but, it does not reject the transfer.
>
>
> However, no purpose is served when addresses are allowed to be purchased by
>
> organizations without need and great harm could come from allowing such
>
> transactions if they start occurring on large scale in order to engage in
>
> speculation or worse, anti-competitive practices.
>
>
> Owen
>
>
> Owen,
>
> As resident devils advocate, I would be remiss not to point out that
> anyone who stocks IP space they can't sell would soon find themselves
> out of business thus discouraging others from substantially engaging
> in the same practice, thus the "invisible hand" fixes the market.
>
>
> True, but, it would not be unusual to stock addresses at $10 until the
> market had high demand and low supply, then try to sell them for $50.
>
> The community does not benefit from that $40 spread. The community is harmed
> by that $40 spread. Only the speculator benefits from that spread.
>
> The invisible hand is slow to react and easily manipulated by those with
> resources to do so.
>
> Owen
>
>
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Having a test market would not have any impact on the supply and
demand of the free pool. The free pool would continue to exist as-is.
The only spread would be in the test market, so those not
participating are not impacted.

-- 
Jeffrey Lyon, Leadership Team
jeffrey.lyon at blacklotus.net | http://www.blacklotus.net
Black Lotus Communications - AS32421
First and Leading in DDoS Protection Solutions